Page 399 - Motor Insurance Ebook IC 72
P. 399

Guide for Motor Insurance

         Associations, who buys a private Car/ motorized two
         wheeler under Hire purchase system or under leasing
         agreement and has the sole use of it and pays the
         insurance premium, shall be entitled to the discount of
         Automobile Association membership, provided he she
         is otherwise eligible to receive the discount under the
         rules. The name of such Hire purchaser/ lessee is to
         be stated the policy.

Q 27. Briefly mention about: A. Vehicles subject to
         Lease Agreement B. Vehicles subject to
         hypothecation agreement C: Vehicles subject to
         higher purchase agreement

Ans: A. Vehicle Subject to Lease Agreement : Policies
              and Certificates of Insurance are to be issued in
              the name of Lessee only and insurance in the
              joint names of the Lessee and Lessor is prohibited.

              If Lessor's interest is to be protected it should be
              done by the use of Endorsement IMT - 6.

              For the purpose of the Personal Accident cover
              for the Owner - Driver granted under the policy,
              the insured named in the policy would continue to
              be deemed as the Owner-Driver subject to
              conditions of the policy relating to this cover.

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